Social media group Hello's Q2 revenue falls on weak China market

Hello

03/09/2026 08:51

Overview
China online social platform's Q2 revenue fell 5.1% yr/yr
Company returned to net profit in Q2 after loss a year earlier
Overseas revenue rose 52% yr/yr, partly offsetting domestic weakness

Outlook
Hello Group expects Q3 2026 net revenues between RMB2.4 bln and RMB2.5 bln

Result Drivers
DOMESTIC WEAKNESS - Co said domestic revenue fell due to external factors affecting broadcaster operations on Momo, weak consumer sentiment, and a decline in Tantan's user base
OVERSEAS EXPANSION - Co said overseas revenue rose on growth of new audio- and video-based products in MENA and incremental gains from dating brands outside MENA
COST INCREASES - Co said costs rose due to higher production costs, increased marketing for new overseas apps, and higher payment channel costs for overseas business

Company press release: ID:nPn8ZKx0Ba

Key Details
Metric
Beat/Miss
Actual
Consensus Estimate
Q2 Revenue
 
RMB 2.49 bln
 
Q2 Adjusted EPS
 
RMB 1.75
 
Q2 EPS
 
RMB 1.52
 
Q2 Adjusted Net Income
 
RMB 273.9 mln
 
Q2 Net Income
 
RMB 237.4 mln
 
Q2 Adjusted Income from Operations
 
RMB 276.1 mln
 

Analyst Coverage
The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 6 "strong buy" or "buy", 1 "hold" and no "sell" or "strong sell"
The average consensus recommendation for the software peer group is "buy"
Wall Street's median 12-month price target for Hello Group Inc. is $8.85, about 61.3% above its September 2 closing price of $5.49
The stock recently traded at 5 times the next 12-month earnings vs. a P/E of 6 three months ago

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(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)